Indian firms secure Rs 1.9 lakh crore through IPOs in FY26

Indian companies raised Rs 19 lakh crore through more than 360 IPOs in FY26 keeping the country among the worlds busiest primary markets but a sharp moderation in listing gains and oversubscription signalled that investors are becoming increasingly selectiveAccording to Grant Thornton Bharats report on Indias IPO market published on Monday fundraising remained robust despite global uncertainty geopolitical tensions and volatile market conditionsHowever investor appetite shifted towards companies with stronger fundamentals better governance earnings visibility and more disciplined valuationsMainboard IPOs hit an alltime high of 109 in FY26 raising around Rs 177 lakh crore This compares to 80 IPOs that mobilised Rs 163 lakh crore in FY25 India accounted for 14 per cent of global IPO listings in March 2026 second only to China the report saidThe resilience of Indias capital markets was supported by strong domestic participation and an expanding investor base However market sentiment became more measured with global developments commodity prices and currency movements increasingly influencing investor decisionsAs per the report offer for sale OFS continued to dominate mainboard IPO proceeds accounting for 61 per cent although the fresh issue component rose to 39 per cent indicating a gradual revival in growthcapital raisingThe shift in investor behaviour was also evident in subscription and listing performance Average IPO oversubscription fell sharply to 39 times in FY26 from 71 times in FY25 reflecting greater scrutiny of valuations governance standards and business qualityAverage listingday gains moderated to 7 per cent in FY26 from 29 per cent in FY25 while the average annual performance of listed IPOs stood at a negative 17 per cent pointing to a more discerning investment environmentIn todays IPO market success is no longer defined by the ability to list but by the readiness to operate as a public company with the governance discipline and credibility to sustain investor confidence well beyond the listing day said Karan Marwah Partner and CFO Advisory Leader Grant Thornton BharatThe report noted that IPO preparedness has emerged as a key differentiator with investors increasingly looking beyond headline financial performance to assess governance standards disclosure quality capital allocation plans and a companys ability to operate effectively as a listed entityRecent regulatory reforms aimed at improving transparency accessibility and investor protection have further strengthened the IPO ecosystem it saidOn the SME front 258 SME IPOs garnered Rs 12030 crore in FY26 the highest fundraising during the threeyear period reviewed In comparison 242 SME IPOs collected Rs 9900 crore in FY25Looking ahead Indias IPO pipeline remains healthy supported by strong domestic participation structural growth drivers and an expanding investor baseCompanies combining strong fundamentals with robust IPO preparedness are likely to be better positioned to access public markets and sustain investor confidence beyond the listing day the report saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever